| I learned that an asset is one that
| |
| | When I think of the idea that money keeps
|
| generates positive cash flow. If it does
| |
| | streaming into my bank account with
|
| not generate income, then it is a
| |
| | little or no work, I am really excited!
|
| liability.
| |
| | Since the idea is so enticing, I decided
|
| For example, a car is liability if it
| |
| | that I want to focus my attention on
|
| does not generate positive cash flow. If
| |
| | building passive incomes. But what are
|
| I rent out a car and it earns a monthly
| |
| | the possible ways to build passive
|
| rental income, I will need to do a simple
| |
| | income? Especially when I do not have
|
| calculation to determine whether it is an
| |
| | much savings at hand?
|
| asset or liability. Basically, I need to
| |
| | One way that I can think of is to write a
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| subtract the car loan monthly repayment
| |
| | book. The main cost will be time on my
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| and maintenance costs from monthly rental
| |
| | part. But if I am able to convince a
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| income. If the result is positive, then
| |
| | publisher to publish and sell my book,
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| it means that the car generates a
| |
| | then I will be able to earn royalty fee
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| positive cash flow and thus it is
| |
| | based on the number of books that are
|
| classified as an asset. If the result is
| |
| | sold. This is a possible source of
|
| negative, then it means that means the
| |
| | passive income to build.
|
| car generates a negative cash flow and
| |
| | The other way that I can do is to build a
|
| thus it classified as a liability.
| |
| | network marketing business. It is also
|
| With this new definition of what is an
| |
| | know as multi-level marketing business.
|
| asset, I understand that if I want to
| |
| | In this kind of business, the distributor
|
| build up my wealth, I must investment
| |
| | will need to get the license to sell the
|
| only in assets that can generate positive
| |
| | products from a parent company that is a
|
| cash. But do I just simply invest in any
| |
| | network marketing company. The fee to be
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| assets that generate me positive cash
| |
| | a distributor is usually very affordable.
|
| flow?
| |
| | The distributor then tries to sell the
|
| For example, if I were to invest in a
| |
| | products to potential customers and earn
|
| business that is generating positive cash
| |
| | commissions from his sales. Also, he can
|
| flow and this business take up all my
| |
| | build a network of distributors under
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| time, is this consider a good investment?
| |
| | him. If he meets his sales quota and his
|
| Since my time would be totally taken up,
| |
| | team of distributors meets their sales
|
| I would not have the time to think of
| |
| | quota, he gets paid for commissions from
|
| building other sources of income. Thus, I
| |
| | his own sales as well as his team of
|
| do not think that this is a good
| |
| | distributors.
|
| investment.
| |
| | But if he did not meet his sales quota
|
| But what if I were to invest in a
| |
| | and his team of distributors meets their
|
| business that generates positive cash
| |
| | sales quota, then he will not get any
|
| flow but required minimum involvement on
| |
| | commissions from the sales of his team of
|
| my part? If that is the case, then I will
| |
| | distributors. The tricky part to create
|
| considerably free to pursue the building
| |
| | this stream of passive income is how to
|
| of other sources of income. My conclusion
| |
| | choose a network marketing company that
|
| is that I should be selective towards
| |
| | is legitimate, stable and big growth
|
| investing in any positive cash flow
| |
| | potential.
|
| assets. But I still have doubts regarding
| |
| | No matter which source of passive income
|
| my conclusion.
| |
| | that I am trying to build, I notice one
|
| When I learned from the Rich Dad series
| |
| | thing in common. Hard work is definitely
|
| that I should be focus on building
| |
| | required to these building the passive
|
| passive income, my doubts are removed.
| |
| | incomes.
|
| That means I should be investing in
| |
| | * DISCLAIMER *
|
| assets that generate positive cash flow
| |
| | The author only provides the material and
|
| as a passive income.
| |
| | information as a layperson's views about
|
| What is considered a passive income? The
| |
| | an important subject. The materials and
|
| way I have understood about passive
| |
| | information are from sources believed to
|
| income is that even if I were to do
| |
| | be reliable and from his own personal
|
| little or nothing for a long time, the
| |
| | experience, but he neither implies nor
|
| cash will still come to me continuously.
| |
| | intends any guarantee of accuracy.
|
| For example, if I were to invest in a
| |
| | All the materials, information and
|
| piece of real estate that generate a
| |
| | procedure in this book are only the
|
| positive cash flow by renting it out,
| |
| | author's personal opinion. You must
|
| then the work that I need to do per month
| |
| | consult your own professional advisor and
|
| will be like ensuring that my rental
| |
| | other reputable sources on any matter
|
| income is collected promptly.
| |
| | that concerns you or others.
|
| Maybe I can even automate this part by
| |
| | The author, publishers and distributors
|
| debiting the rental income from the
| |
| | are not competent and do not profess to
|
| lessee's bank account and crediting it
| |
| | give legal, accounting,medical or any
|
| into my bank account directly. Then, the
| |
| | other type of professional advice. The
|
| only work that I need to do is to ensure
| |
| | reader must always seek those services
|
| that my rental income is credited into my
| |
| | from competent professionals who can
|
| bank account monthly.
| |
| | review your own particular circumstances.
|
| The opposite of passive income is active
| |
| | The author, publisher and distributors
|
| income. Active income means that I have
| |
| | particularly disclaim any liability,
|
| to keep working to ensure that the cash
| |
| | loss, or risk taken by individuals who
|
| keeps coming in. The moment that I stop
| |
| | directly or indirectly act on the
|
| working, the cash also stop coming in. A
| |
| | information contained herein. All readers
|
| job is an example of an active income.
| |
| | must accept full responsibility for their
|
| The employer will stop paying me a salary
| |
| | use of this material.
|
| if I stop work.
| |
| |
|
